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Horrible News For Goldbugs - Paulson Is Bullish On Gold Again; Next - Roubini?

Tyler Durden's picture




 

We wish we had good news, but we are not going to lie: This is the worst possible news for any gold bull out there.

From Bloomberg:

Gold traders are getting more bullish after billionaire hedge-fund manager John Paulson told investors it’s time to buy the metal as protection against inflation caused by government spending.

 

“By the time inflation becomes evident, gold will probably have moved, which implies that now is the time to build a position in gold,” New-York based Paulson said in a letter to investors obtained by Bloomberg. Armel Leslie, a spokesman for Paulson, declined to comment.

 

The 56-year-old manager’s SPDR Gold Trust holdings fell 15 percent in the fourth quarter as his $23 billion hedge fund company had its worst-ever year. His Advantage Plus Fund lost 51 percent in 2011, and the firm said in a third-quarter letter that financial services companies were the “primary drag.” Paulson became a billionaire in 2007 by betting against the U.S. subprime mortgage market. Gold rose 10 percent last year in New York trading, an 11th consecutive annual gain.

And so the Paulson overhang is back. Couldn't Paulson just go ahead and buy Bank of America or some other worthless biohazard again?All that remains is for Roubini to say he prefers gold over spam (and always has, he was merely "misunderstood") and the crash will be imminent.

Or perhaps we will learn following the next $1000 up move in gold that Gartman will have been long gold in Vietnamese Dong.

Well, at least cheap entry points will be available.

 

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Fri, 02/17/2012 - 16:54 | 2171270 mayhem_korner
mayhem_korner's picture

 

 

Well, at least he's "transparent."

Fri, 02/17/2012 - 16:57 | 2171294 Roger O. Thornhill
Roger O. Thornhill's picture

This is troubling. But, luckily I bought the bulk of mine a long time ago.

There is always the 'broken clock' theory with him. Best I can hope for.

Fri, 02/17/2012 - 17:02 | 2171318 Tucson Tom
Tucson Tom's picture

Roger that,Roger!

Fri, 02/17/2012 - 17:09 | 2171362 ihedgemyhedges
ihedgemyhedges's picture

"What's your vector Victor?"

Fri, 02/17/2012 - 17:18 | 2171392 francis_sawyer
francis_sawyer's picture

"Give me a clearance, Clarence..."

Fri, 02/17/2012 - 20:52 | 2171967 Pladizow
Pladizow's picture

Better chance of Gartman having a Long Gold Vietnamese Dong some where else!

Fri, 02/17/2012 - 23:07 | 2172214 TheFourthStooge-ing
TheFourthStooge-ing's picture

It just dawned on me how this will play out and, as weird as the world has been getting, it makes perfect sense. Paulson, now bullish on gold, will be simultaneously proven correct and have his biggest loss yet.

How will this happen? While his call on gold will be correct, his investment will be in GLD. He's not buying metal, he's buying promises. His assumption that the system will continue to function normally has blinded him to the actual underlying reason that gold is a good investment: it is real.

The value of GLD depends upon the integrity of a chain of promises, and the breaking of any of these promises puts the value of GLD at risk. Gold, on the other hand, doesn't depend upon the promises of anyone, nor does it depend upon the integrity of anyone other than an assayer. In fact, being long physical gold is like shorting the honesty and integrity of Wall Street, the Federal Reserve, the City of London, and Vichy DC.

Paulson will lose his ass when the prices of gold and GLD decouple. Gold will skyrocket, and Paulson will be stuck holding unredeemable paper promises backed by vaporized gold.

 

Fri, 02/17/2012 - 23:44 | 2172286 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1  

Very good!

FOFOA-like even...

fofoa.blogspot.com

Sat, 03/24/2012 - 17:57 | 2287180 MeelionDollerBogus
MeelionDollerBogus's picture

Well, for now GLD vs spot gold shows:

http://stockcharts.com/h-sc/ui?s=$GOLD&p=W&yr=2&mn=11&dy=0&id=p99096604499

a pretty accurate overlay. Ratio shows:

http://stockcharts.com/h-sc/ui?s=$GOLD:gld&p=W&yr=2&mn=11&dy=0&id=p99096604499

steady 10.28 to 10.3x GLD = gold spot

so while I fully expect GLD one day to fail while gold spot (real physical) goes up...

http://comparegoldprices.com/

for the time being I expect that if gold makes big swings up or down then options on GLD will still return big. IN particular I'd say a GLD call more than 100 days out or a GLD strangle 60 to 90 days out ought to do OK. What harm can it do to put in 1 to 3 contracts each in that position... just to see how it turns out.

http://flic.kr/p/bpJpXX future projection model for gold spot

Fri, 02/17/2012 - 22:40 | 2172173 A Nanny Moose
A Nanny Moose's picture

Ever seen a grown man nekkid?

Fri, 02/17/2012 - 17:19 | 2171401 goldfreak
goldfreak's picture

shirley you can't be serious?

Fri, 02/17/2012 - 17:20 | 2171410 Turd Ferguson
Turd Ferguson's picture

I'll be more nervous when Robot Trader finally goes long.

Fri, 02/17/2012 - 17:24 | 2171424 tmosley
tmosley's picture

He never "goes" anything, he'll just claim he was long all along.

Fri, 02/17/2012 - 17:43 | 2171508 zerotohero
zerotohero's picture

Long Dong.....Vietnamese of course.

Fri, 02/17/2012 - 19:39 | 2171827 Don Birnam
Don Birnam's picture

"Dong ? No dong. We trade in ROK won, exclusively."

Bang Dae-Ho, CFA

Fri, 02/17/2012 - 20:27 | 2171922 LongSoupLine
LongSoupLine's picture

"No mowr yankee on my wanky..." - Long Duck Dong

Fri, 02/17/2012 - 20:33 | 2171935 longdong silver
longdong silver's picture

Wha?  huh?

Fri, 02/17/2012 - 17:45 | 2171518 DoChenRollingBearing
DoChenRollingBearing's picture

Ha ha!  + another one for the Turd!

Fri, 02/17/2012 - 18:41 | 2171682 HoofHearted
HoofHearted's picture

And I'll be worried about what's happening at Megiddo when Nadler finally gets bullish...

Fri, 02/17/2012 - 20:21 | 2171911 JonNadler
JonNadler's picture

you know....gold doesn't look so bad right now......., he he, nah just teasing you boys    

Gold to 300 by year end!!!!

Aren't I right Akak?

Fri, 02/17/2012 - 23:46 | 2172290 DoChenRollingBearing
DoChenRollingBearing's picture

I thought it would be down to $5.00 or so, you know, the cost of getting it out of the ground.

Did Johnny Bravo ever finish college?

Fri, 02/17/2012 - 17:29 | 2171448 Piranhanoia
Piranhanoia's picture

stop calling me Shirley,  and we're on instruments

Fri, 02/17/2012 - 18:58 | 2171730 GernB
GernB's picture

Of course I'm serious... and stop calling me Shirley

Fri, 02/17/2012 - 19:05 | 2171745 spinone
spinone's picture

I picked the wrong day to stop sniffin glue

Fri, 02/17/2012 - 19:07 | 2171756 peekcrackers
peekcrackers's picture

I am serious and dont call me shirley !

Fri, 02/17/2012 - 20:54 | 2171974 iamgogi
iamgogi's picture

Yes, I am serious. and don't call me shirley. John P would be good. or Mabel

Fri, 02/17/2012 - 23:42 | 2172283 francis_sawyer
francis_sawyer's picture

I haven't felt this sick since the Anita Bryant concert...

Sat, 02/18/2012 - 03:43 | 2172505 Salamanda
Salamanda's picture

Oh yes he is... and stop calling him Shirley!

Fri, 02/17/2012 - 23:25 | 2172246 StychoKiller
StychoKiller's picture

Even a blind sow can find an acorn once in awhile.

Sat, 02/18/2012 - 17:13 | 2173586 FuentesElla23
FuentesElla23's picture

a best friend's mother-in-law makes $73 hourly on the computer. She has been laid off for 6 months but last month her income was $14399 just working on the computer for a few hours. Go to this web site and read more .... LazyCash9.com

Fri, 02/17/2012 - 18:11 | 2171595 Montecarlo
Montecarlo's picture

Gold is the new appl   2's and 20 baby!

Fri, 02/17/2012 - 16:54 | 2171272 SheepDog-One
SheepDog-One's picture

ARRRGghhhhhh me gold dubloons just got a curse from Davey Jones hisself!

Fri, 02/17/2012 - 17:40 | 2171498 Flakmeister
Flakmeister's picture

Not the Hedges very own Davey Jones!   Say it ain't so!

Fri, 02/17/2012 - 16:55 | 2171279 slow_roast
slow_roast's picture

</sarc>

Fri, 02/17/2012 - 16:56 | 2171281 fightthepower
fightthepower's picture

Soros is selling his gold!

Fri, 02/17/2012 - 17:04 | 2171332 hack3434
hack3434's picture

I thought he sold it last year...

Fri, 02/17/2012 - 17:18 | 2171396 francis_sawyer
francis_sawyer's picture

to his left hand

Fri, 02/17/2012 - 18:43 | 2171686 Chaffinch
Chaffinch's picture

It was an arm's length transaction

Fri, 02/17/2012 - 16:56 | 2171282 Robslob
Robslob's picture

Lol

Fri, 02/17/2012 - 16:56 | 2171283 SILVERGEDDON
SILVERGEDDON's picture

Short gold, go long dong silver.

Fri, 02/17/2012 - 20:35 | 2171941 longdong silver
longdong silver's picture

get up and go, got up and went.....

Fri, 02/17/2012 - 16:56 | 2171286 PontifexMaximus
PontifexMaximus's picture

No one even dares to believe that he could be on the right track.....after knowing his short term track record. But: could he be correct?

Fri, 02/17/2012 - 17:20 | 2171409 francis_sawyer
francis_sawyer's picture

Someone needs to pass the memo to Paulson that gold isn't "backed" by anything...

Fri, 02/17/2012 - 16:57 | 2171287 alien-IQ
alien-IQ's picture

that's the signal to go long USD.Yes I know it's shit, but it's (for now at least) the best horse in the glue factory.

Fri, 02/17/2012 - 17:08 | 2171355 Alea Iactaest
Alea Iactaest's picture

... the tallest midget

Fri, 02/17/2012 - 18:39 | 2171679 HoofHearted
HoofHearted's picture

"the leper with the most fingers..." (thanks Max Keiser)

or...the floater as everything else goes down the toilet first...

Fri, 02/17/2012 - 22:43 | 2172177 A Nanny Moose
A Nanny Moose's picture

The hooker with crabs, rather than AIDS.

Fri, 02/17/2012 - 16:57 | 2171288 pan
pan's picture

BTFD!

Fri, 02/17/2012 - 16:58 | 2171289 mc_LDN
mc_LDN's picture

UGHHHHH. Unless.... He's realised that everyone on ZH does the oppopsite of what he says hence time to reverse trading strategy. BUY BUY BUY

Fri, 02/17/2012 - 20:40 | 2171951 donsluck
donsluck's picture

Hmm, is it time to abandon ZH? You know it couldn't last.

Fri, 02/17/2012 - 16:57 | 2171293 css1971
css1971's picture

Just set my stops.

Fri, 02/17/2012 - 16:57 | 2171295 antidisestablis...
antidisestablishmentarianismishness's picture

I'm pretty sure the flock will be able to put a positive spin on this.

Fri, 02/17/2012 - 20:42 | 2171956 tekhneek
tekhneek's picture

I like the part where they show you the 1 hour chart and scream bubble after the fixing.

Fri, 02/17/2012 - 16:57 | 2171296 valvehume
valvehume's picture

go for arts 

Fri, 02/17/2012 - 16:58 | 2171297 fonzannoon
fonzannoon's picture

Look how complacent this market is. Greece..who gives a shit. Oil....who gives a shit....

I thought Paulson only sold his GLD so he could buy physical. I guess that is not true?

Fri, 02/17/2012 - 16:58 | 2171303 Dermasolarapate...
Dermasolarapaterraphatrima's picture

Barbarian!

Fri, 02/17/2012 - 23:27 | 2172251 StychoKiller
StychoKiller's picture

Someone got hungry for Au-crunchies! :>D

Fri, 02/17/2012 - 16:59 | 2171306 ekm
ekm's picture

Seeing Paulson's failures, whoever behaves as if he or she knows what they are doing, including some ass braggers on this blogg, should be ashamed of themselves.

Suggestion: Go for a colonoscopy.

Fri, 02/17/2012 - 17:00 | 2171307 i_fly_me
i_fly_me's picture

This is GREAT news!  My acquisition rate is headed up.

Fri, 02/17/2012 - 17:00 | 2171308 kindape
kindape's picture

i dont think he ever stopped being bulllish. he just was thinking 2 steps ahead and market was at 1 step ahead and he had margin calls

Fri, 02/17/2012 - 17:00 | 2171310 Bastiat009
Bastiat009's picture

Does that mean that everything I have been reading here was wrong and the only reason why I should buy gold was that Paulson was selling his? I thought that gold was good for the exact reason explained by Paulson today. 

Fri, 02/17/2012 - 18:14 | 2171601 spankthebernank
spankthebernank's picture

Tongue and cheek my man. When asset prices roll over gold will go with it, for a time anyway. Maybe he's calling the top in the equity market?

Fri, 02/17/2012 - 17:01 | 2171311 Scribbles
Scribbles's picture

CRAP! I'm selling it all for Apple stock.

Fri, 02/17/2012 - 19:05 | 2171746 GernB
GernB's picture

Only the best investors waited for it to get over 500 before buying because that's like a milestone that proves it's going up.

Fri, 02/17/2012 - 17:01 | 2171316 Black Forest
Black Forest's picture

Every dog has its day.

Fri, 02/17/2012 - 17:01 | 2171317 Strelok
Strelok's picture

This might be bad news for gold, in the short term anyway.  When everybody is becomes bullish on gold, or anything else, it's probably time to step back and reasses your next moves. 

Either way, I'm long silver since I bought all of mine at $12-15/oz back in the '07-'08 era.  I'm too poor for gold. 

Fri, 02/17/2012 - 17:01 | 2171320 The Swedish Chef
The Swedish Chef's picture

I wish I bought more back when... But I guess we can expect a correction now, can´t we?

Fri, 02/17/2012 - 17:06 | 2171343 SheepDog-One
SheepDog-One's picture

Sure! Expect a correction, in anything but stocks from here on out.

Fri, 02/17/2012 - 17:02 | 2171323 resurger
resurger's picture

Is it ok to say

"Fuck Gold & Silver"

O_0

Fri, 02/17/2012 - 17:05 | 2171335 blu
blu's picture

Not around here. You'll have down-votes before you can say "holy phizzical Batman!"

Fri, 02/17/2012 - 17:09 | 2171360 resurger
resurger's picture

just for this post Blu :)

Fri, 02/17/2012 - 17:12 | 2171372 AgShaman
AgShaman's picture

Yes....but it's a bit like wearing and eye-patch on the public rail system...

You may wake up in a road-side ditch.

Don't wake up in a road-side ditch....keep some gold and silver in your portfolio

Fri, 02/17/2012 - 17:22 | 2171413 francis_sawyer
francis_sawyer's picture

don't have a grandchild with a dog collar...

Fri, 02/17/2012 - 17:32 | 2171456 AgShaman
AgShaman's picture

double good!

Sat, 02/18/2012 - 12:10 | 2172851 Sunshine n Lollipops
Sunshine n Lollipops's picture

Q: Is it ok to say "Fuck Gold & Silver"

A: As long as you follow proper Fight Club etiquette and say "Fuck Gold & Silver," bitchez.

 

 

Fri, 02/17/2012 - 17:03 | 2171325 Dr. Engali
Dr. Engali's picture

Shit! Fuck!

Fri, 02/17/2012 - 17:08 | 2171351 AgShaman
AgShaman's picture

Gold induced Tourette's Syndrome?

Fri, 02/17/2012 - 17:04 | 2171329 blu
blu's picture

Well then I am off to the sushi bar for a ceremonial dram of sake before committing ritual sepuku in the center of the nearest intersection.

Just kidding. I'm going on a bike ride.

Fri, 02/17/2012 - 17:23 | 2171416 francis_sawyer
francis_sawyer's picture

don't drink & ride...

Fri, 02/17/2012 - 20:53 | 2171970 donsluck
donsluck's picture

Go ahead, you have 0.0 liability.

Fri, 02/17/2012 - 17:04 | 2171330 youngman
youngman's picture

He will buy his gold...but his investments in Greeceor whatever  will fall flat...so he will have to sell again to cover his loses

Fri, 02/17/2012 - 17:05 | 2171334 AgShaman
AgShaman's picture

"Gold is a bubble....and the bull market in gold is over"  -Larry Kudlow

Fri, 02/17/2012 - 23:33 | 2172263 francis_sawyer
francis_sawyer's picture

He never really did quite understand the true meaning of a "GOLD-i-locks" economy, did he?

Fri, 02/17/2012 - 17:06 | 2171336 _ConanTheLibert...
_ConanTheLibertarian_'s picture

Hey, Paulson merely got a brainwave. Every idiot has his good moments.

Fri, 02/17/2012 - 19:30 | 2171809 WmMcK
WmMcK's picture

Even a blind squirrel catches a nut sometimes.

Fri, 02/17/2012 - 20:43 | 2171958 Au Shucks
Au Shucks's picture

only 'cause they're easier for the cats to catch

Fri, 02/17/2012 - 17:05 | 2171338 Motley Fool
Motley Fool's picture

Correction ahead or perhaps demise of the paper market. Things do seem to be progressing nicely.

Fri, 02/17/2012 - 17:09 | 2171356 Eisenhorn
Eisenhorn's picture

This COULD be the one time he is right.

After all, it means even Paulson is now giving up on the Ponzi.  And my guess is he knows a person or two with some insight into how close we might be.....

Fri, 02/17/2012 - 17:09 | 2171359 Gunther
Gunther's picture

I will get scared when he buys real bullion and takes posession of the metal.

Fri, 02/17/2012 - 17:20 | 2171411 tobinajwels
tobinajwels's picture

How do we know that he has not bought physical?

Fri, 02/17/2012 - 17:31 | 2171453 Gunther
Gunther's picture

"The 56-year-old manager’s SPDR Gold Trust holdings..."
That does not sound like bullon to me.

Fri, 02/17/2012 - 23:31 | 2172261 StychoKiller
Fri, 02/17/2012 - 17:14 | 2171383 Comay Mierda
Comay Mierda's picture

gold has had a nice rally but its do for a retracement.  let it come down to $1600-$1650 range and buy hand over fist

Fri, 02/17/2012 - 17:57 | 2171550 saulysw
saulysw's picture

You may be right, or wrong - time will tell. By the way, the word is "due", not "do".

Fri, 02/17/2012 - 18:25 | 2171645 DosZap
DosZap's picture

John NADLER say's Au is likely heading abck down to 1250.00 1400.00 range.

So, We stay in a holding pattern awaiting the EU, if it falls apart, he may be correct.................on the fiat price.

Good luck buying any at that price.

Fri, 02/17/2012 - 18:48 | 2171701 agNau
agNau's picture

Doo
One component of double Doo.

*Spelling Police & DHS approved.

Fri, 02/17/2012 - 17:17 | 2171390 SunnyDD
SunnyDD's picture
Hehe, That is it!

I.m long on food now.

 

Fri, 02/17/2012 - 17:30 | 2171452 Black Forest
Black Forest's picture

Me too. Plus PM.

Fri, 02/17/2012 - 18:25 | 2171644 HiHoAg
HiHoAg's picture

....and bullets.

They always forget the bullets.

Fri, 02/17/2012 - 17:18 | 2171395 Dead Canary
Dead Canary's picture

Please Tyler, the word "Goldbug" is derogatory. You should know better.

How about..... Gold Stallions!  Yea, that's better.

Fri, 02/17/2012 - 17:34 | 2171462 Wakanda
Wakanda's picture

Bugs will be on this planet long after the homo sapiens and stallions are dust.

Goldbugs survive.

I like to think of myself as a survivor.

Fri, 02/17/2012 - 18:54 | 2171716 HungrySeagull
HungrySeagull's picture

Those are called Cockroaches, I like the 3 inch ones that hiss into your palm.

Fri, 02/17/2012 - 17:18 | 2171399 LouisDega
LouisDega's picture

Cash... Its whats for dinner. Thats all Papa John pizza accepts

Fri, 02/17/2012 - 20:42 | 2171957 oddjob
oddjob's picture

Never mind the fact that the cheese was made in a motel bathtub.

Sat, 02/18/2012 - 12:16 | 2172862 Sunshine n Lollipops
Sunshine n Lollipops's picture

"Papa John's. Better bathtubs. Better pizza."

Fri, 02/17/2012 - 17:18 | 2171400 Badabing
Badabing's picture

ahhh Friday Jack and gold!

Fri, 02/17/2012 - 17:21 | 2171412 AmazingLarry
AmazingLarry's picture

I'm here by renoucing my yellow fever religion!

Which all-knowing, all-powerfull bubble do I praise to now!?!? Aaaahahahahahah.....

 

Fri, 02/17/2012 - 17:22 | 2171415 americanspirit
americanspirit's picture

Another way to look at this is that even Paulson finally gets it.

Fri, 02/17/2012 - 17:23 | 2171418 FoieGras
FoieGras's picture

Post claims "Paulson is bullish on gold again". Incorrect. Correct headline would be "Paulson STILL bullish on gold".

Fri, 02/17/2012 - 17:29 | 2171441 ClaymoreStoor
ClaymoreStoor's picture

This is correct.  I remember when Paulson started loading up on gold because it was the catalyst that got me into gold.  It was when gold was around $700/ounce and all of a sudden it came out that paulson had built a $5 billion position in gold.  Everyone else reading here, including Tyler Durden, clearly have a very short term memory.  Paulson's biggest position has been gold for at least 3 years now.

Fri, 02/17/2012 - 18:16 | 2171610 xela2200
xela2200's picture

He had to sell because He had bet the farm on banks and had to cover the loses with the winnings from gold. He is running a hedge fund after all. He can start multi-billion dollar position which will also call more money. For me, it is just another log in the fire. PAGE another log. Bernake another log.

At this point, It feels like all the big boys can do is try to control the ascend of PM. I am surprised with all the smacking they did this week plus USD "strength" that PM didn't get slammed into nothing. There must be some strong and patient hands at this point.

Fri, 02/17/2012 - 17:30 | 2171451 Wakanda
Wakanda's picture

Maybe someone has discovered the philosophers stone and gold will become as plentiful as water.

My plans to take over the world have been shot to hell.

Oh well...

Long weekend to drown my dashed plans in cheap beer and fried foods...

Fri, 02/17/2012 - 17:33 | 2171463 tmosley
tmosley's picture

Yup, woe unto those holding paper gold or silver.

Fri, 02/17/2012 - 17:35 | 2171468 Piranhanoia
Piranhanoia's picture

a broken clock is telling the right time twice with 86,400 chances per day.  Or 1440 chances with no second hand.

Flip a coin and its 1:1 for ever.

feel better now?

Fri, 02/17/2012 - 17:39 | 2171494 Strider52
Strider52's picture

The next time (if it happens) that Silver gets below 30 (there could be a monkey-hammer around options expiry, it might be 1 week from today) I am going all-in on silver. My last 10 pounds was lost in one of those increasingly common boating accidents.

Fri, 02/17/2012 - 18:08 | 2171578 spencer
spencer's picture

10 punds is like 145 ounces which is like $4500 only.

C'mon man you can do much better this time.

Fri, 02/17/2012 - 19:05 | 2171742 Strider52
Strider52's picture

I will not disclose any actual holdings on a public blog...

Fri, 02/17/2012 - 18:05 | 2171573 BudFox2012
BudFox2012's picture

Dire news indeed.  I guess I better go back to buying up Greek debt then...

Fri, 02/17/2012 - 18:29 | 2171579 xela2200
xela2200's picture

.

Fri, 02/17/2012 - 18:09 | 2171589 IrritableBowels
IrritableBowels's picture

Paper?  Who gives a shit?

Fri, 02/17/2012 - 18:09 | 2171590 Threeggg
Threeggg's picture

Is it stock options expiry Friday today ?

Never mind...........back to watching the paper shills on Faux Business ! (with the exception of the "Judge")

Fri, 02/17/2012 - 18:13 | 2171600 IrritableBowels
IrritableBowels's picture

Srsly?  YUH FIYAD!

Fri, 02/17/2012 - 18:17 | 2171612 IrritableBowels
IrritableBowels's picture

Oh I see-the show was cancelled but the judge remains.  Here's something I thought was a little strange regarding the incident:

Stop sending Fox emails

Fri, 02/17/2012 - 18:10 | 2171591 rickadoh
rickadoh's picture

until i see all the corner shops start selling all the gold they been buying, then i will sell/

Fri, 02/17/2012 - 18:13 | 2171603 IrritableBowels
IrritableBowels's picture

Them and Craiglist.

Fri, 02/17/2012 - 18:46 | 2171666 DavidPierre
DavidPierre's picture

 

Buy Gold in Euro's?

Something really funny ... a quote by the very pompous Dennis Gartman.

He had recently been touting how "we are bullish Gold and thus shall buy Gold in Euro's" ... who in the world talks like this, much less thinks it's impressive "doing so"?... 

Not a fan of Dennis Gartman, as he has had a mediocre track record at the very best, who for years has talked down to his despised Gold bugs and belittled anyone and everyone who spoke of Gold as money.

According to him, Gold was always just another commodity though he has softened his insults recently as ...obvious...has become even obvious to him.  Mr. Gartman has represented the epitome of all those who have talked down to and belittled hard money advocates who just happened to be right all along. 

They were right for ALL the right reasons! The fact that CNBC has him on as a regular should tell you all you need to know.  

His statement "we shall buy Gold in Euro's" is asinine. What he is trying to say, he thinks the Euro will underperform the Dollar so he wants the extra kicker that the Euro will drop versus Gold faster than with Dollars. His statement is asinine because in order to "buy Gold in Euro's" you must do it with some sort of contract somewhere, somehow. He could of course short Euro's versus Dollars and then go out and buy real physical Gold. This is not what he is talking about, he is speculating by purchasing contracts for Gold based in Euro's. When you buy Gold you give a currency for payment whether it be Dollars, Euro's Yen, Pounds or Rubles. Whenever you consumate the trade and give payment, you are no longer in posession of your fiat currency, you have shorted whatever currency you paid in.

The most important thing is what he misses, OWNING ounces!

Going one step further, MF Global should have taught Mr. Gartman one thing if nothing else, there is risk in holding a contract.

Your Gold may not exist that is represented, your broker can go bankrupt, the exchange can go bankrupt amongst these lessons ... just ask Gerald Celente.

Dennis Gartman is NOT buying Gold in Euro's. Buying Gold is giving a fiat currency or something of value, in exchange for the real metal.

You either own the Gold or you don't.

When the current fraudulent fiat episode ends, it won't matter whether you paid for your ounces in Dollars, Euros or livestock. What will matter is how many ounces you have, period.

 He is a speculator. He is trading in and out to make a profit.  This profit will be held in what? More fiat currency of course!

The profit will be held in a fiat account until he is ready to strike again. He has given some lip service to "everyone should have 3-5% of their portfolio in Gold" ... GLD anyone!  He hasn't made the leap to understanding that should he not have leap at the right time, he is out and it may be at the wrong time. Not to mention having to rely on his precious contracts to perform during a period of high stress and default.

It is this mindset of trading that will eventually boost real physical Gold and Silver out of the statosphere. If 100 claims on Gold exist for every one real ounce of Gold, there will be a lot of naked longs out there.

For every naked short there is a naked long even if the long doesn't know it.

It doesn't matter that the long is in the dark and has no idea he really isn't long...until it does!

Once it does matter, will this naked long want to replace his naked position with something real.  Maybe they will not only want to replace it, but replace it with ALL the nearly worthless fiat that they have left. This, while anyone who is really long is having thoughts of NEVER parting with one real ounce because the market place of nakedness is demonstrating just how rare and valuable their one ounce really is.

 It is this one simple concept that the famous mouthpieces for the fiat establishment just do not understand, Gold IS money. It always ...for 5,000 years... has been and always will be.

So the next time you hear some important sounding CNBC talking muppet yell fire telling you that "cash is king" and time to "move to cash", please understand that they don't understand shit from Shinola.

www.lemetropolecafe.com

Fri, 02/17/2012 - 21:02 | 2171990 Quinvarius
Quinvarius's picture

Actually, Gartman is long gold in any currency that it happened to do well in that day.  But he is short gold in any currency that it did badly in that day.

Fri, 02/17/2012 - 18:34 | 2171671 Likstane
Likstane's picture

Did Paulsdumb actually buy physical or just piss out of his mouth?  Big difference. 

Fri, 02/17/2012 - 19:05 | 2171743 iLoveMisesToPieces
iLoveMisesToPieces's picture

Gold will top will someone finally releases a gold backed currency to trade oil and other commodities.

Fri, 02/17/2012 - 19:06 | 2171750 zerotohero
zerotohero's picture

Paulson owns a unicorn that shits gold turds - its magic just like everything about Paulson.

Fri, 02/17/2012 - 20:02 | 2171879 q99x2
q99x2's picture

That Roubini used to be a trustworthy fellow until he began selling his company. Then he went from Dr. Doom to The Parrot of Wall Street.

Fri, 02/17/2012 - 20:13 | 2171894 juggalo1
juggalo1's picture

You guys are so cruel.  First Paulson was a genius, now he's a fuckup.  Whitney is a genius, then she's a fuckup.  Now he agrees with you, he still must be wrong.

Wed, 02/29/2012 - 21:30 | 2210572 Lost Wages
Lost Wages's picture

If you're talking about Whitney Tilson, he is a man.

Fri, 02/17/2012 - 20:54 | 2171971 Marty Rothbard
Marty Rothbard's picture

As much money as he manages, if he buys bullion, and mining stocks instead of ETFs, that are managed to hold prices down, his call will be a self fufilling prophesy.   It might even break the ETFs by proving that there isn't enough bullion available for them to grow any more.

Fri, 02/17/2012 - 20:57 | 2171980 Quinvarius
Quinvarius's picture

I don't remember Paulsen ever being bearish on gold.

Fri, 02/17/2012 - 21:49 | 2172067 The Count
The Count's picture

Read this for a dose of how the gold market really is controlled...

 

http://www.bibliotecapleyades.net/sociopolitica/esp_sociopol_gold02a.htm

 

Fri, 02/17/2012 - 22:39 | 2172172 lasvegaspersona
lasvegaspersona's picture

The Black gold story does not pass my likelihood test. For there to be even hundreds of hidden tons one must believe that some folks could mine in secret what big companies with tons of high explosives and huge bulldozers have been unable to do in the open with lots of encouragement.

Fri, 02/17/2012 - 22:05 | 2172102 cjbosk
cjbosk's picture

For starters, he's been long gold for a LONG time Tyler(s) and even with the 51% shit kickin' he took last year, his annualized returns are still at a minimum over double that of anyone on this site, net of management fees and incentive fees.

Any takers?

Fri, 02/17/2012 - 22:18 | 2172133 lasvegaspersona
lasvegaspersona's picture

If you have over 100,000 shares of GLD you are big enough to have an Authorized Participant do a redemption for you. This make GLD nearly the same as physical for those with over $17mil in the ETF. For the rest of us it is just betting on the price of gold. GLD can also be a way of protecting against huge drops (by buying Puts) should all confidence flee the market. This could happen when folks realize that unless you have the gold in your hand it might not be yours....think MFGlobal...think a failure at COMEX...

Fri, 02/17/2012 - 23:06 | 2172210 Lord Koos
Lord Koos's picture

Even a blind squirrel finds a nut now and then.

Sat, 02/18/2012 - 01:34 | 2172395 JD59
JD59's picture

www.usdebtclock.org

That is all you need to know, to know that Gold is headed much, much, much, much higher.

Period!

Sat, 02/18/2012 - 03:48 | 2172510 suckerfishzilla
suckerfishzilla's picture

Gold could lose $40/oz in the  course of a days trading.   I don't think Silver could lose $40/oz in the course of a days trading.  Gold is a headache.

Mon, 02/20/2012 - 16:33 | 2178390 Digital_Bucaneer
Digital_Bucaneer's picture

It's like that giant headline saying GEORGE SOROS SELLS ALL OF HIS GOLD.
But no one in the comments neither the article itself asked or specified WHAT TYPE OF GOLD IT IS.
Is it ETF's backed by air or physical?
I think we all know the answer...

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Thu, 03/01/2012 - 05:12 | 2211665 cnhedge
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